OREANDA-NEWS.  September 10, 2012. China Steel Corporation (CSC) held the domestic pricing meeting for 2012 October and November shipments and announced the following statement:

European debt crisis is dragging the economic growth of European advanced countries. The US economy recovery is still slow. The Mainland China demand is weak and the effect of stimulus policies have yet to come out. Furthermore, the political tensions in the Middle East cause the recent sharp rise in oil prices. The IMF has revised down the global economic growth forecasts for 2012 and 2013. Taiwan’s export is impacted and both private consumption and investment shrink. The DGBAS (Directorate-General of Budget, Accounting and Statistics) has therefore adjusted down the GDP growth rate again to 1.66% for 2012.

Due to summer vacation in EU and US, monsoon season in Asia and Ramadan in the Middle East, the third quarter is traditionally off season for the steel industry. Coupled with the uncertainty of global economy, steel prices are still unfavorable. However, given that the iron ore and coal price declines have slowed down, once customers start to replenish inventory, the steel prices will bottom out and bounce back.

To alter customers’ wait-and-see attitude and to boost the confidence and competitiveness of downstream industries, CSC has decided to reduce prices of all products for delivery in October and November by an average of 5.11%, or NT\\$1,142/MT.